[Federal Register Volume 88, Number 90 (Wednesday, May 10, 2023)]
[Notices]
[Pages 30070-30073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09945]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 88, No. 90 / Wednesday, May 10, 2023 / 
Notices  

[[Page 30070]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2023-0007]


Notice of Funding Availability (NOFA) for the Rice Production 
Program

AGENCY: Farm Service Agency, Department of Agriculture (USDA).

ACTION: Notification of funding availability.

-----------------------------------------------------------------------

SUMMARY: The Farm Service Agency (FSA) is announcing the availability 
of funding for the Rice Production Program (RPP) to provide financial 
assistance to rice producers affected by higher production costs during 
the 2022 crop year. RPP will provide a one-time payment to assist rice 
producers with additional expenses associated with the 2022 crop year 
costs for rice. In this document, FSA is providing the eligibility 
requirements, application process, and payment calculation for RPP.

DATES: 
    Funding availability: Implementation will begin May 10, 2023.
    Applications due date: We will accept applications for assistance 
through July 10, 2023.

FOR FURTHER INFORMATION CONTACT: Alison Groenwoldt; telephone: (202) 
720-4213; or by email: [email protected]. Individuals who 
require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 (voice and text telephone (TTY)) or 
dial 711 for Telecommunications Relay service (both voice and text 
telephone users can initiate this call from any telephone).

SUPPLEMENTARY INFORMATION:

Background

    The Consolidated Appropriations Act, 2023 (Pub. L. 117-328) (the 
CAA, 2023), appropriated $250 million of rescinded unobligated balances 
from the Consolidated Appropriations Act, 2021 (Pub. L. 116-260), to 
the Secretary to provide financial assistance to rice producers through 
RPP. In accordance with section 602 of the CAA, 2023, RPP will provide 
a one-time payment to assist eligible rice producers with additional 
expenses associated with 2022 crop production costs for rice. The 
payment will be issued in two parts that will constitute the 1-time 
payment authorized in the CAA, 2023, in order to implement the 
requirement that the funding be fully expended without exceeding 
available funding.
    The $250 million funding for RPP assistance will remain available 
until expended and RPP payments will be subject to the availability of 
funding.
    Under the authority for RPP, the payment rate per pound is as 
determined by the Secretary and shall be not less than 2 cents per 
pound unless there is a need to adjust the payment rate such that the 
amount of funding made available for RPP is fully expended. A payment 
rate at or above 2 cents per pound is expected to exceed the available 
funding. To ensure total payments do not exceed available funding, FSA 
will make an initial payment to eligible applicants at a payment rate 
of 1 cent per pound. Any remaining funding available at the conclusion 
of the application period, will be issued in a second payment to 
eligible applicants at a payment rate determined by the Secretary such 
that the funding available for RPP is fully expended, taking into 
account necessary reserves. Payments will be calculated based on 
information certified on the FSA-174.

Administration

    RPP will be administered under the general supervision of the FSA 
Deputy Administrator for Farms Programs (Deputy Administrator). RPP 
will be carried out by FSA State and county committees with 
instructions issued by the Deputy Administrator.
    FSA State committees, FSA county committees, representatives, and 
their employees do not have authority to modify or waive any of the 
provisions of RPP, except as discussed below.
    The FSA State committee will take any required action not taken by 
the FSA county committee. The FSA State committee will also:
     Correct or require correction of an action taken by an FSA 
county committee that is not in compliance with this document; or
     Require an FSA county committee to not take an action or 
implement a decision that is not in compliance with this document.
    The Deputy Administrator or a designee may determine any question 
arising under RPP or reverse or modify a determination made by an FSA 
State committee or FSA county committee.
    The Deputy Administrator may authorize FSA State committees and FSA 
county committees to waive or modify non-statutory deadlines and other 
program requirements in cases where lateness or failure to meet such 
other requirements does not adversely affect the operation of RPP.
    A representative of FSA may execute applications and related 
documents only under the terms and conditions determined and announced 
by FSA. Any document not executed under such terms and conditions, 
including any purported execution before the date authorized by FSA, 
will be null and void.

Definitions

    The following definitions apply to RPP.
    Application period means the period starting on May 10, 2023 and 
ending on July 10, 2023 during which time applicants may apply for RPP 
payments.
    Actual Production History (APH) means the average actual production 
history for the primary policyholder as calculated by the Risk 
Management Agency (RMA). For RPP purposes, Substantial Beneficial 
Interest holders will be assigned an average APH using the primary 
policy holders APH and the APH from their individual policies, if 
applicable.
    Average Adjusted Gross Farm Income means the average of the portion 
of the person or legal entity's adjusted gross income derived from 
farming, ranching, or forestry operations for the 3 taxable years 
preceding the most immediately preceding complete taxable year. The 
relevant tax years are 2018, 2019, and 2020.
    If the resulting average adjusted gross farm income derived from 
items 1 through 12 of the definition of income derived from farming, 
ranching and forestry operations is at least 66.66 percent of the 
average adjusted gross

[[Page 30071]]

income of the person or legal entity, then the average adjusted gross 
farm income may also take into consideration income or benefits derived 
from the following:
    (1) The sale of equipment to conduct farm, ranch, or forestry 
operations; and
    (2) The provision of production inputs and services to farmers, 
ranchers, foresters, and farm operations.
    Crop year means the 12-month period following a crop's normal 
harvest period.
    Deputy Administrator means Deputy Administrator for Farm Programs, 
Farm Service Agency, U.S. Department of Agriculture, or their designee.
    Deputy Administrator Established Yield means a national average 
yield, as determined by the Deputy Administrator to be used when APH 
data is not available The national average yield is a weighted average 
yield using FSA eligible rice acres and state average APH data. The 
Deputy Administrator established yield is 7,694 pounds.
    Eligible rice means short, medium, and long grain rice, including 
temperate japonica and sweet rice. Industrial rice and wild rice are 
not eligible to receive a RPP payment.
    Eligible rice acres means eligible rice reported by the acreage 
reporting deadline as being planted or prevented from being planted for 
the 2022 crop year.
    Income derived from farming, ranching, and forestry operations 
means income of an individual or entity derived from:
    (1) Production of crops, specialty crops, and unfinished raw 
forestry products;
    (2) Production of livestock, aquaculture products used for food, 
honeybees, and products derived from livestock;
    (3) Production of farm-based renewable energy;
    (4) Selling (including the sale of easements and development 
rights) of farm, ranch, and forestry land, water or hunting rights, or 
environmental benefits;
    (5) Rental or lease of land or equipment used for farming, 
ranching, or forestry operations, including water or hunting rights;
    (6) Processing, packing, storing, and transportation of farm, 
ranch, forestry commodities including renewable energy;
    (7) Feeding, rearing, or finishing of livestock;
    (8) Payments of benefits, including benefits from risk management 
practices, crop insurance indemnities, and catastrophic risk protection 
plans;
    (9) Sale of land that has been used for agricultural purposes;
    (10) Payments and benefits authorized under any program made 
available and applicable to payment eligibility and payment limitation 
rules;
    (11) Income reported on Internal Revenue Service (IRS) Schedule F 
or other schedule used by the person or legal entity to report income 
from such operations to the IRS;
    (12) Wages or dividends received from a closely held corporation, 
and Interest Charge Domestic International Sales Corporation (IC-DISC) 
or legal entity comprised entirely of family members when more than 50 
percent of the legal entity's gross receipts for each tax year are 
derived from farming, ranching, or forestry activities as defined in 
this document; and
    (13) Any other activity related to farming, ranching, and forestry, 
as determined by the Deputy Administrator.
    Producer means a person, partnership, association, corporation, 
estate, trust, or other legal entity that produces rice as a landowner, 
landlord, tenant, or sharecropper.
    United States means all 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, and any other territory or possession of 
the United States.

Eligible Applicants

    To be eligible for RPP, a producer must have reported to FSA a 
share interest in eligible rice by the acreage reporting deadline. 
Late-filed or modified rice acreage reports will not be eligible for 
RPP. In addition, the applicant must meet one of the following:
     Be a citizen of the United States;
     Be a resident alien, which for purposes of this subpart 
means ``lawful alien'' as defined in 7 CFR part 1400;
     Be a partnership organized under State law;
     Be a corporation, limited liability company, or other 
organizational structure organized under State law; or
     Be an Indian Tribe or Tribal organization, as defined in 
Section 4(b) of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 5304).

Application Process

    FSA will accept applications during the application period. FSA 
will pre-populate the Rice Production Program (RPP) Application (form 
FSA-174) using acreage data and ownership shares reported to the FSA 
and APH data on file with RMA or, if APH data is not available, the 
Deputy Administrator established yield. The pre-populated form will be 
mailed to producers at the start of the application period.
    To apply for RPP, applicants must return a completed FSA-174 to 
their recording FSA county office by the close of the application 
period. Applications may be submitted in person or by mail, email, 
facsimile, or other methods announced by FSA.
    Producers who reported eligible rice to FSA by the acreage 
reporting deadline according to 7 CFR 718.102, Acreage Reports, but do 
not receive a pre-populated form may still apply for RPP by visiting 
their recording FSA county office by close of the application period 
and completing an FSA-174.
    Each applicant must submit the following forms in person or by 
mail, email, or facsimile, or other methods announced by FSA, if not 
already on file with FSA, within 60 days of the application deadline:
     Form AD-2047, Customer Data Worksheet, for existing 
customers who need to update their customer profile;
     Form CCC-901, Member Information for Legal Entities, if 
applicable;
     Form CCC-902, Farm Operating Plan for an individual or 
legal entity as provided in 7 CFR part 1400;
     Form FSA-510, Request for an Exception to the $125,000 
Payment Limitation for Certain Programs, accompanied by a certification 
from a certified public accountant or attorney as to the person or 
legal entity's certification, for a legal entity and all members of 
that entity, for the 2022 program year, including the legal entity's 
members, partners, or shareholders, as provided in 7 CFR part 1400, if 
applicable; and
     Form AD-1026, Highly Erodible Land Conservation (HELC) and 
Wetland Conservation (WC) Certification, for the RPP applicant and 
applicable affiliates as provided in 7 CFR part 12.
    Applicants may be required to provide additional documentation to 
FSA if requested, to verify the accuracy of information provided on the 
application. Additional documentation must be submitted within 30 
calendar days from the requested date or the application will not be 
processed. Additional information may include, but is not limited to:
     The producer's APH; and
     Evidence, such as seed receipts, custom harvesting 
receipts, or sales receipts to substantiate the reported share interest 
in the eligible rice.
    Initial RPP payment will be issued after an application is reviewed 
and eligibility requirements are met. At the

[[Page 30072]]

conclusion of the application period, a second payment will be issued 
to eligible applicants using a payment rate determined by the Secretary 
such that the funding available for RPP is fully expended, taking into 
account necessary reserves.

Payment Rates and Calculations

    Consistent with section 602(b) of CAA, 2023, the RPP payment will 
be calculated as described in this section.
    Producers will certify on the FSA-174 the producer's share of 
eligible rice acres and APH, or if APH data is not available, the use 
of the Deputy Administrator established yield.
    FSA will determine an eligible producer's RPP payment by adding the 
calculated payment for planted acres and the calculated payment for 
prevented planted acres, which are each calculated as follows:
     For planted acres, the producer's share of planted 
eligible rice acres multiplied by APH or, if APH data is not available, 
the Deputy Administrator established yield, multiplied by the payment 
rate; and
     For prevented planted acres, the producer's share of 
prevented planted eligible rice acres multiplied by APH or, if APH data 
is not available, the Deputy Administrator established yield, 
multiplied by the payment rate, which is then multiplied by a prevented 
planting factor of 60 percent.
    For example, a producer reported 200 acres of planted rice and 100 
acres of prevented planted rice for the 2022 crop year, and the 
producer has an APH of 7,500 pounds per acre. For the initial payment, 
FSA multiplies $0.01 x 7,500 x the sum of adding 200 planted acres plus 
60 percent x 100 prevented planted acres, resulting in the total 
initial payment of $19,500.
    RPP payments are subject to availability of funds. To ensure total 
payments do not exceed available funding, FSA will make an initial 
payment to eligible applicants at a payment rate of 1 cent per pound. 
Any remaining funding available at the conclusion of the application 
period, will be issued in a second payment to eligible applicants at a 
payment rate determined by the Secretary such that the funding 
available for RPP is fully expended, taking into account necessary 
reserves.

Sharing Payments Between Multiple Producers

    Each producer reporting a share interest of eligible rice to the 
FSA on a Report of Acreage (FSA-578) will be given the opportunity to 
apply for RPP and the RPP payment will be calculated based on the 
producer's reported ownership share. If a farm's acres of rice are 
leased on a share basis, neither the landlord nor the tenant can 
receive 100 percent of RPP payment for the producers with an ownership 
share on the farm, as the RPP payment is to be distributed 
proportionately to the producers according to the landlord's and 
tenant's share of the eligible rice as reported to FSA on the FSA-578.
    FSA will approve an application for shared RPP payments to 
applicants when all the following, as applicable, have been determined 
to have occurred:
    (1) Landlords, tenants, and sharecroppers each sign their own RPP 
application and agree to the eligible rice acres recorded on the 
application, which when added together cannot exceed 100 percent of the 
eligible rice acres recorded on the FSA-578 for the 2022 crop year;
    (2) Upon request from the FSA county committee, if necessary, 
provide a copy of the lease agreement; and
    (3) FSA determines that the payment shares do not circumvent either 
the provisions of this document or the provisions of 7 CFR part 1400.

Payment Limitation and Attribution

    As required by the CAA, 2023, and consistent with 7 CFR 
760.1507(b), the payment limitation for RPP is determined by the 
producer's average adjusted gross farm income (income from activities 
related to farming, ranching, or forestry). Specifically, if the 
producer's average adjusted gross farm income is less than 75 percent 
of the producer's average adjusted gross income (AGI) for the 3 taxable 
years preceding the most immediately preceding complete tax year, a 
producer, other than a joint venture or general partnership, cannot 
receive, directly or indirectly, more than $125,000 in payments for 
RPP.
    If at least 75 percent of the producer's average AGI is derived 
from farming, ranching, or forestry related activities and the producer 
provides the required certification and documentation, as discussed 
below, the producer, other than a joint venture or general partnership, 
is eligible to receive, directly or indirectly, up to $250,000 in 
payments for RPP.
    The relevant tax years for establishing a producer's average AGI 
and percentage derived from farming, ranching, or forestry related 
activities are 2018, 2019, and 2020 for program year 2022.
    To receive more than $125,000 in RPP payments, producers must 
submit form FSA-510, accompanied by a certification from a certified 
public accountant or attorney as to the percentage of that person or 
legal entity's certified average AGI that was derived from farming, 
ranching, or forestry operations. If a producer requesting the 
increased payment limitation is a legal entity, all members of that 
entity must also complete form FSA-510 and provide the required 
certification according to the direct attribution provisions in 7 CFR 
1400.105, Attribution of Payments. If a legal entity would be eligible 
for the increased payment limitation based on the legal entity's 
average AGI derived from farming, ranching, or forestry related 
activities but a member of that legal entity either does not complete a 
form FSA-510 and provide the required certification or is not eligible 
for the increased payment limitation, the payment to the legal entity 
will be reduced by the payment limitation applicable to the share of 
the RPP payment attributed to that member.
    If a producer files form FSA-510 and the accompanying certification 
after their RPP payment is issued but before the application period, 
FSA will process the form FSA-510 and issue an additional payment if 
the producer's initial payment amount was limited by the $125,000 
payment limitation.
    A payment made to a legal entity will be attributed to those 
members who have a direct or indirect ownership interest in the legal 
entity, unless the payment of the legal entity has been reduced by the 
proportionate ownership interest of the member due to that member's 
ineligibility. Attribution of payments made to legal entities will be 
tracked through four levels of ownership in legal entities as described 
in Sec.  760.1906.
    Like other programs administered by FSA, payments made to an Indian 
Tribe or Tribal organization, as defined in section 4(b) of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 5304), will 
not be subject to payment limitation.

Provisions Requiring Refund to FSA

    In the event any application for an RPP payment resulted from 
erroneous information or miscalculation, the participant must refund 
any excess payment to FSA with interest to be calculated from the date 
of the disbursement to the participant. If, for whatever reason, FSA 
determines that the applicant misrepresented the information provided, 
the application will be disapproved and the full RPP payment will be 
required to be refunded to FSA with interest from the date of 
disbursement.

[[Page 30073]]

Miscellaneous Provisions

    General requirements that apply to other FSA-administered commodity 
programs also apply to RPP, including compliance with the provisions of 
7 CFR part 12, ``Highly Erodible Land and Wetland Conservation,'' and 
the provisions of 7 CFR 718.6, which address ineligibility for benefits 
for offenses involving controlled substances. Appeal regulations in 7 
CFR parts 11 and 780 and equitable relief and finality provisions in 7 
CFR part 718, subpart D, apply to determinations under RPP.
    Participants are required to retain documentation in support of 
their application for 3 years after the date of approval. Participants 
receiving an RPP payment must permit authorized representatives of USDA 
or the Government Accountability Office, during regular business hours, 
to enter the participant's business and to inspect, examine, and to 
allow representatives to make copies of books, records, or other items 
for the purpose of confirming the accuracy of the information provided 
by the participant.
    Applicants have a right to a decision in response to their 
application. If an applicant files a late RPP application, the 
application will be considered a request to waive the deadline.
    The Deputy Administrator has the authority to waive or modify 
application deadlines and other requirements or program provisions not 
specified in law in cases where the Deputy Administrator determines it 
is (1) equitable to do so and (2) where the lateness or failure to meet 
such other requirements or program provisions do not adversely affect 
the operation of RPP.
    Applicants who request to waive or modify RPP provisions do not 
have a right to a decision on the requests, and the Deputy 
Administrator's refusal to exercise discretion on requests to waive or 
modify RPP provisions will not be considered an adverse decision and 
is, by itself, not appealable.
    The regulations governing offsets in 7 CFR part 3 apply to RPP 
payments.
    In either applying for or participating in RPP, or both, the 
applicant is subject to laws against perjury (including but not limited 
to 18 U.S.C. 1621). If the applicant willfully makes and represents as 
true any verbal or written declaration, certification, statement, or 
verification that the applicant knows or believes not to be true, 
during either applying for or participating in RPP, or both, then the 
applicant may be found to be guilty of perjury. Except as otherwise 
provided by law, if guilty of perjury the applicant may be fined, 
imprisoned for not more than 5 years, or both, regardless of whether 
the applicant makes such verbal or written declaration, certification, 
statement, or verification within or outside the United States.

Paperwork Reduction Act Requirements

    In compliance with the provisions of the Paperwork Reduction Act 
(44 U.S.C. chapter 35), the information collection request has been 
approved by OMB under the control number of 0503-0028. FSA will collect 
the information from the rice producers to qualify for the payment to 
cover the higher production costs. RPP is a one-time funding as 
described in this NOFA.

Environmental Review

    The environmental impacts have been considered in a manner 
consistent with the provisions of the National Environmental Policy Act 
(NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on 
Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations 
for compliance with NEPA (7 CFR part 799).
    The purpose of RPP is to provide a one-time payment to assist rice 
producers with the increased production costs for rice from the 2022 
crop year. The limited discretionary aspects of RPP do not have the 
potential to impact the human environment as they are administrative. 
Accordingly, these discretionary aspects are covered by the Categorical 
Exclusions in 7 CFR 799.31(b)(6)(iii) that applies to price support 
programs.
    No Extraordinary Circumstances (7 CFR 799.33) exist. FSA has 
determined that this action does not constitute major Federal actions 
that would significantly affect the quality of the human environment, 
individually or cumulatively. Therefore, FSA will not prepare an 
environmental assessment or environmental impact statement for this 
regulatory action and this document serves as documentation of the 
programmatic environmental compliance decision for this federal action.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Assistance Listing,\1\ to which this document applies is 10.976, 
Rice Production Program (RPP).
---------------------------------------------------------------------------

    \1\ See https://sam.gov/content/assistance-listings.
---------------------------------------------------------------------------

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Individuals who require alternative means of communication for 
program information (for example, braille, large print, audiotape, 
American Sign Language, etc.) should contact the responsible Agency or 
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY)) 
or dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any telephone). 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2023-09945 Filed 5-8-23; 8:45 am]
BILLING CODE 3411-E2-P